State of Arkansas Jurisdiction:
**~f.-~**o f **[~**Y2 yt)t:J Type of Levy: **_---=:L.::::..oc:::.::a:.!.I~Sa:::..:l.=.e:::...s :::..:an~d::.....::::..U~se=-T.!..!a::..::x"---**  Enactment Date:

I -I -f d. Ordinance
No

.t) -tf -Lf **~**Tax Rate:

I iJ, PurposeandUseofTax:

**--~ )p~e** **rA ~c~n~J** 

**·**__**~~~--~~~**

**i~ --** 
**L~~ ~--------** 

**-- -------**  Applicability

of Tax: General sales & use tax- Applies to all goods and services taxable under state law. Administrative Costs: 3% of gross collections withheld by the state for admin ist ration of the tax. Credits or Exemptions: Tax subject to same credits
& exemptions available under state sales & use tax law Subsequent Amendments and Amendment Purpose: 1. Date: __**...:.../...!..CJ--1.1....::3~--------**Amend

i ng Ordina nee No. __....!:: {,.:.....) _".:.....1:::.3_

-_ '-1 :.........:: 7 ____

_ Purpose of Amendment: **-....!**

**'l ::....:** **....!:: p/** **::..:..f.7 ~t** **---+fl~e-::....::'1...:...f**

**....:.. t'** **.ll**
**t) ::....,,,t....** **f-**___:. J...!..7..:::...v _.!_ fv ::...·-..!:. h:..!.c ...:... /J :...:. rl_ -=:s :...__ ____

_ 2. Date: **_!.._,f~--rq..,t..-1 1------** Amending Ordinance No. _..;::: 0 _ ··_ - a .!... 1L7_

-....£. Lf ....:.. 5 :;__ ___

_ 3. Date: **-- ""'** **""'c_. r.."** **'--' 5~** **-------**Amending Ordina nee No. **--"**
**() "---.~:::.** 

**5' '-** **J~'- ·'7** ____

_ Purpose of Amendment:

**-+ __..!...** **..l... ..!::.A~1..l.** **---r;**
**j) c..:....::.c....:.·** 
r .....; f- '-..:....
,·.::. o _....,..:...___:::.. P-t-f=-

-..L. / _ 7. !,.!::.... ·**---..:. ~** ___h _ ._ P _ n _(-6 _________ 4. Date: --
-------

-------

- Amending Ordinance
No .---------------

- PurposeofAmendment: --------------------------------------- Is the tax on aviation fuel distributed for airport related purposes: YesoG J /
If No, state reason for belief that the tax is grandfathered. The state of Arkansas administers local taxes for all cities and counties

in this state and commits that the Arkansas Department
of Finance and Administration
will notify the FAA of any subsequent amendments to this tax that could affect grandfathered status. DateORDINANCE NO. 0-81-'f "!.--- AN ORDINANCE PROVIDING FOR THE LEVY OF A LOCAL SALES AND USE TAX AT THE RATE OF ONE PERCENT (1%) ON RECEIPTS FROM RETAIL SALES WITH- IN THE CITY OF CONWAY, ARKANSAS; PROVIDING FOR THE REBATE OF TAXES IN EXCESS OF **TWENTY~FIVE**DOLLARS ($25.00) PAID TO THE CITY ON **~**SINGLE TRANSACTION; PROVIDING FOR A SPECIAL ELECTION
ON /lloutm fl"' 4 1981; DEcLARING
AN EMERGENCY AND FOR OTHER ptJRPOSES. WHEREAS there is a great need for immediate improvement

of Municipal Services and stable sourceof revenueto finance local government services; and whereas Act 990 of 1975, as amended, provides for the local option of adoption
of a city-wide sales and use tax, NOW, THEREFORE,

BE IT ORDAINED
BY THE CITY COUNCIL OF THE CITY OF CONWAY, ARKANSAS: Section
1. Levy of Sales and Use Tax. There is hereby levied alocal sales (gross receipts) and usetaxatthe rate of One Percent of the receipts from the sale at retail within the City of Conway, Arkansas,
onall items which are subject to taxation under the Arkansas Gross Receipts Tax Act of 1941, Act 386 of 1941 of the Acts of Arkansas,
assaid Act has been heretofore
or maybe amended, and under the Arkansas Compensating Tax Act of 1949, Act 487 of the 1949 Acts of Arkansas,
assaid Act has been heretofore
or maybe amended and by Act 990 of 1975 asamended by Act 133 of 1981, of the Acts of Arkansas. Section
2. Single Transaction Rebate. Taxes in excessof TwentyFive Dollars paid tothe City of Conway ona single transaction shall be rebated
tothe purchaser
of the item subject to taxation under Section

1 hereof. The City Clerk of the City of Conway, Arkansas, may promulgate reasonable rules and regulations not inconsistent with the provisions
of the ordinance
to implement the rebate procedure of taxes paid in excessof Twenty-Five Dollars per single transaction. Section
3. Special Election. Said question
of the levy of a sales and usetaxas provided
in Section

1 hereof shall be submitted toavote of the **citi~s**
of Conway, Arkansas,
by special election to be held onthe**~t:J.t;**her- day of**~~1981.**I Page -2- The ballot title to be used at such election shall be substantially in the following form: "FOR adoption
of a One Percent CliO Local Sales and Use Tax within the City" "AGAINST adoption
of
a One-Percent (1%) Local Sales and Use Tax within the City" Section
4, Emergency Clause. That the City Council for the City of Conway, Arkansas has determined that there is a great need to establish

a stable source of revenue to finance vital municipal services, and this ordinance being necessary for the preservation of the health, safety and welfare
of the citizens
of Conway, Arkansas, shall become law immediately upon its passage and approval. Passed and approved
on this ,Jj{. day of September, Attested: **c~i~k~-** Approvvs;d

•

.J ,..A Mayor
1981. (jSTATE OF ARKANSAS COUNTY OF FAULKNER CITY OF CONWAY CERTIFICATE I, Michael Garrett, the duly elected, qualified, and acting: Clerk- Treasurer of the City of Conway, Arkansas, do hereby certify that the attached and foregoing

is a true and correct copy of ordinance presented
to the City Council of the City of Conway, Arkansas,

at a meeting of that body held on the 24th day of September 1981, same is duly recorded
in the minutes of meeting of said Council. Witness, my band and seal of the City of Conway, Arkansas, this 24th day of February 2006.

CITY CLERK- TREASURER SealORDINANCE NO.

SEP 0 1 **1~83 ~'At·"**  AN ORDINANCE AUTHORIZING THE ISSUANCE ,OF NOT TO**EXCEl~~) c~l;)** '&:'IJI( $14,000,000

IN CAPITAL IMPROVEMENT BONDS UNDER AMENDMENT NO. 62 TO THE ARKANSAS CONSTITUTION
FOR THE PURPOSE
OF ACQUIRING, CONSTRUCTING AND/OR EQUIPPING STREET IMPROVEMENTS, SOLID WASTE COLLECTION, DISPOSAL, COMPACTING AND RECYCLING FACILITIES AND EQUIPMENT, PUBLIC PARK FACILITIES, FIRE FIGHTING FACILITIES AND EQUIPMENT AND POLICE STATION FACILITIES AND EQUIPMENT; LEVYING A- .5% **LOCAL_~AND**

USE TAX TO RETIRE SAID BONDS; AUTHORIZING THE PLEDGE OF ALL OR A SPECIFIED PORTION OF THE CITY'S PROCEEDS FROM AN EXISTING

1% LOCAL SALES AND USE TAX LEVIED BY THE CITY TO RETIRE SAID **BO~~S;**CALLING **A~**SETTING

A DATE FOR A SPECIAL ELECTION
TO REFER TO A VOTE OF THE PEOPLE THE QUESTION
OF ISSUING SAID BONDS TO BE REPAID FROM THE PROCEEDS
OF SAID TAXES; DECLARING
AN EMERGENCY; **A~**FOR OTHER PURPOSES. WHEREAS, the City of Conway, Arkansas (the ncity

11 )has outstanding

anissue of Sales and Use Tax Capital Improvement Bonds dated August
1, 1.987 (the

11 1987 Bonds

11 ),issued under Amendment No. 62 tothe constitution

of the State of Arkansas,
as implemented by Act 871 of 1985, asamended {the

11 Act

11 );and WHEREAS, the 1987 Bonds aresecured by the pledge of an existing

1% sales and usetax levied by the City pursuant
to Ordinance No. 081-42 adopted by the City on September 24, 1981 (the 11 1% Sales and Use Taxu)

; WHEREAS, the City Council
of the City has determined that certain capital improvements areneeded and that the funds therefor canbest be obtained by the issuance
of capital improvement bonds pursuant
to the Act; and WHEREAS, the estimated cost to the City of these capital **im~rovements**will be approximately $14,000,000; and WHEREAS, the City canissue Sales and Use Tax Capital Improvement Bonds, Series 1993A in principal amount not to exceed $14,000,000

to finance the capital improvements
and paycosts of issuance; NOW, THEREFORE,

BE IT ORDAINED
BY THE CITY COUNCIL OF THE CITY OF CONWAY, ARKANSAS THAT' Section
l.. (a) The City Council hereby authorizes the issuance
of capital improvement bonds under the Act, in a principal amount not to exceed $14, 000, 000 for the purpose
of acquiring, constructing and/or equipping street improvements, solid waste collection, disposal, compacting and recycling facilities and equipment, public park facilities, fire fighting facilities and equipment and police station facilities and equipment; provided, however, that each purposefor which the bonds aretobe issued shall be submitted

as

a separate question
at the electionhereinafter provided for and that the total amount of bonds to be issued shall not exceed the principal amount, in the aggregate, approved by the voters. (b) The Mayor and City Clerk are hereby authOrized

to execute atrust indenture which defines the terms and provisions

of the bonds, the rights of the ownersof the bonds, provides for the security for the bonds, and provides for the appointment

of
a trustee for the bonds. Section
2. (a) To retire the aforesaid bonds, but subject to the limitation prescribed
by paragraph
(b) of this section, there is hereby levied

alocal sales (gross receipts) tax at the rate of one-half percent (.5%) onthe receipts
of the sale at retail within the City of all items which are subject
to taxation under the Arkansas Gross Receipts Tax Act of 1941, Act 386 of the 1941 Acts of Arkansas,

assaid Act 386 has been heretofore

or maybe hereinafter amended; and that there is hereby imposed anexcise tax onthe storage, use,orother consumption within the City of tangible personal property purchased, leased, orrented from any retailer from outside the state for storage, use,orother consumption

in the City at arate of one-half percent (.5%) of the sale price of the property or,in the caseof leases or rentals,
of said lease orrental price, which tax shall be collected according to the terms, procedures,
and regulations

of the Arkansas Compensating Tax Act of 1949, Act 487 of the 1949 Acts of Arkansas, assaid Act 487 has been heretofore

or may hereinafter

be amended. The aforesaid bonds shall also be secured from

a pledge of and lien uponthe existing

1% Sales and Use Tax. (b) The aforesaid sales and usetaxes shall be levied and collected only onthe first two thousand five hundred dollars ($2,500)
of gross receipts, gross proceeds
orsales price from

a single transaction. Vendors collecting, reporting, and remitting said taxes shall show said taxes as
a separate entry onthe tax report form filed with the Commissioner

of Revenues. (c) The term

11 Single transaction

11 is defined in Ordinance No: 0-87-17 of the City. Section
3. At the annual school election
to be held in the usual polling places in the City on september 21, 1993, there shall be submitted
to the electors
of the City the question
of issuing the aforesaid bonds to be secured
as described
in Section

2 (a) above. Section
4. the election
in The questions shall be placed on substantially
the following form: the ballot for There is submitted
to the qualified electors
of the City of Conway, Arkansas, the issuance
of capital improvement bonds (the

11 Bonds n)

,under Amendment No_ 62 to the Arkansas Constitution,

as implemented

by Act 871 of 1985, as amended, for the purpose
of acquiring, -2-
**~aaooD~6.wPs** 061993constructing and/or equipping
(i) street improvemen,s

in an amount not to exceed $8,000,000, (ii) solid we. te collection, disposal, compacting and recycling **facil~**ies and equipment
in an amount not to exceed $2-,500,000, (iii) public park facilities

in an amount-nOt
to exceed $2, 350,
0 0 0, ( i v) fire fighting facilities and equipment in an amount not to exceed $575,000 and (v) police station facilities and equipment

in an amount not to exceed $575,000. The City has levied

a .5% sales and use tax within the City to be levied and collected
on the first $2,500 of gross receipts, gross proceeds
or sales price on each single transaction,
the proceeds
of which shall be pledged to pay the principal of, interest on, and fees and expenses
in connection with said Bonds, if approved.

_.**_e-~** t

' In addition, the Bonds, if approved, w e secured by
a pledge of and lien upon all or
a portion of the City's proceeds
of an existing one percent (1%) local sales and use tax levied by the City pursuant
to Ordinance No. 081-42 adopted by the City on September 24, 1981 (the

11 1% Sales and Use Tax). The extent and nature of the pledge and lien of the existing 1% Sales and Use Tax on the Bonds shall be determined
by subsequent ordinance
of the City. In the event that the voters shall approve only

a portion of the Bonds proposed to be issued, there shall only be issued Bonds for the purpose(s) approved
by the voters. Any Bonds that are approved may be combined into

a single issue of Bonds, which may be issued at one time or in series from time to time. Vote on each question by placing an

11 X 11 in one of the following squares, either for or against: Question One; Bond issue in principal amount not to exceed $8,000,000 for the purpose

of acquiring, constructing, reconstructing, repairing, straightening
and widening
of streets in the City, which may include related sidewalk, traffic signal, curbing, guttering and drainage improvements. FORo

or AGAINSTo Question Two: Bond issue in principal amount not to exceed $2,500,000 for the purpose of acquiring, constructing and equipping of various solid waste collection, disposal, compacting and recycling facilities and equipment
in the City, which -3-
RBBOOD46.\VPS **08!9~3**mayinclude the acquiring
of land and the construction and equipping

of
a recycling facility for use by the City, the acquisition

of newsanitation trucks and the acquisition

of other recycling equipment. or AGAINST, Question Three: Bond issue in principal amountnottoexceed $2,350,000 for the purposeof acquiring, constructing and equipping public park facilities
in the City, which mayinclude the acquiring, constructing and equipping
ofa multi-purpose conununity center/gymnasium, softball fields and other related recreational facilities, equipment and apparatus. or AGAINST, Question Four: Bond issue in principal amountnottoexceed $575,000 for the purposeof acquiring, constructing and equipping fire fighting facilities and equipment
in the City, which may include the acquiring, constructing
and equipping
of
a fire station and related fire fighting equipment and other public safety equipment. or AGAINST, Question Five: Bond issue in principal amountnottoexceed $575,000 for the purpose
of acquiring and equipping police station facilities and equipment
in the City, which mayinclude the acquiring and equipping

of police substation communication facilities and equipment and other public safety equipment.

or AGAINST, Section
5. The election shall be held and conducted and the votecastand the results declared
in the manner provided for municipal elections under the election laws of the State asthen in effect. Only qualified votersof the City shall have the right to voteatthe election. The City Clerk is hereby authorized and directed
to give notice of the election by oneadvertisement

in a newspaper having

a general circulation within the City, the publication

tobe notless than ten (10) days prior tothe date of the election. Section
6.A certified copyof this Ordinance shall be furnished
tothe Faulkner County Board of Election Commissioners, sothat it may place the question
onthe ballot for the election, provide the necessaryelection officials and supplies, and canvass -4-
RB.BOOD46.WP5 C81993the voteonthe question.

A certified copyof the Ordinance shall also be provided
tothe Director
of the Department

of Finance and Administration

of the State of Arkansas and tothe Treasurer
of the State of Arkansas. Section
7. The results
of the election, shall be proclaimed by the Mayor. The Mayor's proclamation shall be published one(1) time in
a newspaper having general circulation

in the City. The results
as proclaimed shall be conclusive unless attacked
in the Circuit Court of Faulkner County within thirty (30) days after the date of publication

of the proclamation. /1 Section
8. The aforesaid

.5% sales and usetaxshall be .0!1 levied and collected until all bonds authorized

in this ordinance **,~**and approved by the votersshall have been recired in full. :fin Section
9. J'l.ll ordinances and partsthereof in conflict **~**0 herewith are hereby repealed
tothe extentof such conflict, **~t"~Ji~~!~3::::i~d;~:d**

**!l~o :~~~~ce;;Jf'·.:;;%J~l'** **O::n~Y~;2** Section 10. The City Council hereby determines that the City of Conway is in dire need of accomplishing
and providing essential capital improvements; that an appropriate wayto provide such capital improvements

is by the levying of a.5% sales and usetax onthe gross receipts from business within the City and by the issuance
of bonds payable from such taxrevenuesand also by
a pledge of and lien uponall or
a specified portion of the City's proceeds
of the City's existing

1% Sa·les and Use Tax levied pursuant
toOrdinance No. 081-42 of the City; and, that this ordinance shall be given immediate effect sothat the essential capital improvements maybe acquired, constructed and/or equipped assoonas possible. Therefore,

an emergency
is hereby declared
to exist and this ordinance being necessaryfor the immediate preservation

of the public health, safety, and welfare shall be in full force and effect from and after its passageand approval. PASSED **]I~**APPROVED this 20th day of August, 1993. ATTEST, **ByFl}~~**

' City Clerk

-5-
RBBD0046.WP5 081993

### C E R T I F I

C A T E The undersigned, City Clerk of the City of Conway, Arkansas, hereby certifies that the foregoing
is
a true and perfect copy of an Ordinance adopted
at
a special meeti"ng of. th"e City Council of the City of Comray, Arkansas, held at the City Hall in said City at 12:00 o'clock noon, on August 20, 1993. 

### DATED: AUGUST 20th, 1993. (S E A L)ORDINANCE 

### NO.~ AN ORDINANCE AUTHORIZING THE ISSUANCE OF NOT TO EXCEED $25,665,000
IN CAPITAL IMPROVEMENT BONDS UNDER AMENDMENT NO. 62 TO THE ARKANSAS CONSTITUTION AND ACT 871 OF !985 FOR THE PURPOSE OF ACQUIRING, CONSTRUCTING AND/OR EQUIPPING STREET IMPROVEMENTS, SOLID WASTE COLLECTION, DISPOSAL, COMPACTING AND RECYCLING FACILITIES AND EQUIPMENT, PUBLIC PARK FACILITIES, FIRE FIGHTING FACILITIES AND EQUIPMENT, POLICE STATION FACILITIES AND EQUIPMENT, AND MUNICIPAL COURT FACILITIES; LEVYING

A .5% LOCAL SALES AND USE TAX TO RETIRE SAID BONDS; AUTHORIZING THE PLEDVE OF ALL OR A SPECIFIED PORTION OF THE CITY'S PROCEEDS FROM AN EXISTING 1% LOCAL SALES AND USE TAX LEVIED BY THE CITY TO RETIRE SAID BONDS; CALLING AND SETTING

A DATE FOR A SPECIAL ELECTION TO REFER TO A VOTE OF THE PEOPLE THE QUESTION OF ISSUING SAID BONDS TO BE REPAID FROM THE PROCEEDS
OF SAID TAXES; DECLARING
AN EMERGENCY; AND FOR OTHER PURPOSES. WHEREAS,
the City Council of the City has determined that certain capital improvements
are needed within the City and that the funds therefor can best be obtained by the issuance of capital improvement bonds pursuant
to Amendment No. 62 to the Constitution
of the State of Arkansas,

as implemented

by Act 871 of 1985, as amended (the "Act"); and 'WHEREAS,
the total estimated cost to the City of these capital improvements

is approxlinately $25,000,000; and WHEREAS,
the City can issue its Sales and Use Tax Capital Improvement Bonds, Series 1997A in principal amount not to exceed $25,665,000

to finance said capital improvements,

to fund
a debt service reserve, and to pay costs of issuance; and WHEREAS,
the City has levied an existing 1% sales and use tax pursuant
to Ordinance No. 0-81-42 adopted on September 24, 1981 (the "!% Sales and Use Tax"); NOW, THEREFORE,
BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF CONWAY, ARKANSAS THAT: Section
1. The City Council hereby authorizes the issuance of capital improvement bonds under the Act, in an aggregate principal amount not to exceed $25,665,000
for the purpose of acquiring, constructing and/or equipping street improvements, solid waste collection, disposal, compacting and recycling facilities and equipment, public park facilities and equipment, fire fighting facilities and equipment, police station facilities and equipment and municipal court facilities and equipment; provided, however, that each purpose for which the bonds are to be issued shall be submitted

as a separate question
at the special election hereinafter provided for and that the total amount ·of bonds to be issued shall not exceed the principal amount,
in the aggregate, approved by the voters.Section
2. (a) To retire the aforesaid bonds, but subject
to the limitation prescribed
by paragraph (b) of this section, there is hereby levied

a local sales (gross receipts) tax at the rate of one-half percent (.5%) on the receipts of the sale at retail within the City of all items which are subject
to taxation under the Arkansas Gross Receipts Tax Act of 1941, Act 386 of the Acts of the General Assembly
of the State of Arkansas of 1941, as said Act 386 has been heretofore or may be hereinafter amended; and that there
is hereby imposed
an excise tax on the storage, use or other consumption within the City of tangible personal property purchased, leased or rented from any retailer from outside the state for storage, use or other consumption

in the City at a rate of one-half percent (.5%) of the sale price of the property or, in the case of leases or rentals, of said lease or rental price, which tax shall be collected according

to the terms, procedures, and regulations
of the Arkansas Compensating Tax Act of 1949, Act 487 of the Acts of the General Assembly
of the State of Arkansas
of 1949, as said Act 487 has been heretofore or may hereinafter
be amended. The aforesaid bonds shall also be secured from

a pledge of and lien upon the City's existing 1% Sales and Use Tax. (b) The aforesaid sales and use taxes shall be levied and collected only on the first two thousand five hundred dollars ($2,500) of gross receipts, gross proceeds
or sale, rental or lease price from

a single transaction. Vendors collecting, reporting, and remitting said taxes shall show said taxes as a separate entry on the tax report form filed with the Commissioner

of Revenues
of the State of Arkansas. (c) The term "single transaction"

is defined
in Ordinance No. 0-83-17 of the City, as heretofore

or hereinafter amended. Section
3. At a special election
to be held in the usual polling places in the City on October
7, 1997, there shall be submitted

to the electors of the City the question of issuing the aforesaid bonds to be secured
as described

in Section 2(a) above. Section
4. The questions shall be placed on the ballot for the election
in substantially the following form: There
is submitted

to the qualified electors of the City of Conway, Arkansas, the issuance of capital improvement bonds (the "Bonds"), under Amendment No. 62 to the Arkansas Constitution,

as implemented

by Act 871 of 1985, as amended, for the purpose of acquiring, constructing and! or equipping (i) street improvements

in an amount not to exceed $10,260,000,
(ii) solid waste collection, disposal, compacting and recycling facilities and equipment

in an amount not to exceed $4,620,000, (iii) public park facilities and equipment

in an amount not to exceed $3,080,000, (iv) fire fighting facilities and equipment

in an amount not to exceed $3,850,000,
(v) police station facilities and equipment

in an amount not to exceed $2,825,000, and (vi) municipal court facilities and equipment

in an amount not to exceed $1,030,000. The City has levied

a .5% -2-

RSS03A99 090397sales and use tax within the City to be levied and collected on the first $2,500 of gross receipts, gross proceeds
or sale, rental or lease price on each single transaction,
the proceeds of which shall be pledged
to pay the principal of, interest on, and fees and expenses
in connection with said Bonds,
if approved. In addition, the Bonds,
if approved, will be secured by a pledge of and lien upon all or a portion of the City's proceeds
of an existing one percent
(1 %) local sales and use tax levied by the City pursuant
to Ordinance No. 0-81-42 adopted by the City on September 24, 1981 (the "I% Sales and Use Tax"). The extent and nature of the pledge and lien of the e<isting I% Sales and Use Tax shall be determined

by a subsequent ordinance
of the City. In the event that the voters shall approve only
a portion of the Bonds proposed

to be issued, there shall only be issued Bonds for the purpose(s) approved by the voters. Any Bonds that are approved may be combined into
a single issue of Bonds, which may be issued at one time or in series from time to time. Vote on each question by placing an appropriate mark in one of the following squares, either for or against: Question One: Bond issue in principal amount not to exceed $10,260,000
for the purpose of acquiring, constructing, reconstructing, repairing, straightening and widening
of streets in the City, which may include related sidewalk, traffic signal, curbing, guttering and drainage improvements. FOR:

0

or AGAINST:

0 Question Two: Bond issue in principal amount not to exceed $4,620,00J for the purpose of acquiring, constructing and equipping
of various solid waste collection, disposal, compacting and recycling facilities and equipment

in the City, which may include the acquisition
of land and the construction and equipping
of a recycling facility for use by the City, the acquisition
of new sanitation trucks and the acquisition of other recycling equipment. FOR:

0

or AGAINST:

0 Question Three: Bond issue in principal amount not to exceed $3,080,()(X) for the purpose of acquiring, constructing and equipping public park facilities
in the City, which -3-

RSS03A99 090397mayincludetheacqumng,constructingandequtppmgofamulti-purposecommunitycenter/gymnasium,softballandsoccerfields,relatedparkingfacilitiesandotherrelatedrecreationalfacilities,equipmentandapparatus.FOR:0orAGAINST:0QuestionFour:Bondissueinprincipalamountnottoexceed$3,850,000forthepurposeofacquiring,constructingandequippingfirefightingfacilitiesandequipmentintheCity,whichmayincludetheacquiring,constructingandequippingofafirestation,atrainingfacilityandrelatedfirefightingequipmentandotherpublicsafetyequipment.FOR:0orAGAINST:0QuestionFive:Bondissueinprincipalamountnottoexceed$2,825,000forthepurposeofacquiringandequippingpolicestationfacilitiesandequipmentintheCity,whichmayincludetheacquisitionoflandandtheacquiring,constructingandequippingofapolicecommunicationscenter,atrainingcenterandotherpublicsafetyfacilitiesandequipment.FOR:0orAGAINST:0QuestionSix:Bondissueinprincipalamountnottoexceed$1,030,000forthepurposeofrenovatinganexistingbuildingownedbytheCityforthepurposeofhousingmunicipalcourtfacilities,whichmayincludetheacquisitionofrelatedequipmentandtheconstructionorimprovementofparkinglots.FOR:0orAGAINST:0Section5.TheelectionshallbeheldandconductedandthevotecastandtheresultsdeclaredinthemannerprovidedformunicipalelectionsundertheelectionlawsoftheStateasthenineffect.OnlyqualifiedvotersoftheCityshallhavetherighttovoteattheelection.TheCityClerkisherebyauthorizedanddirectedtogivenoticeoftheelectionbyoneadvertisement-4-RSSOJA99090397in a newspaper having

a general circulation within the City, the publication

to be not less than ten

( 10) days prior to the date of the election. Section
6. A certified copy of this Ordinance shal! be furnished

to the Faulkner County Board of Election Commissioners,

so that it may place the question on the ballot for the election, provide the necessary election officials and supplies, and canvass the vote on the question.

A certified copy of the Ordinance shall also be provided

to the Director of the Department
of Finance and Administration

of the State of Arkansas and to the Treasurer
of the State of Arkansas. Section
7. The results of the election shall be proclaimed

by the Mayor. The Mayor's proclamation shall be published one (1) time in a newspaper having general circulation

in the City. The results
as proclaimed shall be conclusive unless attacked
in the Circuit Court of Faulkner County within thirty (30) days after the date of publication
of the proclamation. Section

8. The aforesaid .5% sales and use tax shall be levied and collected until all bonds authorized

in this ordinance and approved by the voters shall have been retired
in full. Section
9. The City considers this Ordinance

to be its declaration
of official intent to issue bonds and to make reimbursement

to the City with
a portion of the proceeds of such bonds for all original expenditures incurred by the City in acquiring, constructing

or equipping those projects approved
by the voters berween the date that is sixty (60) days prior to the date of adoption of this Ordinance and the date the bonds are issued, plus
a 

### de minimis amount and preliminary expenditures,

as such terms are defined
in Section 1.150-2(1)
of the Federal Income Tax Regulations,
for all purposes of Section 1.150-2 of the Federal Income Tax Regulations. Section 10. Rose Law Firm,

a Professional Association,

is hereby engaged
as Bond Counsel with respect
to the issuance of the Bonds, the fees and expenses of which fum shall be a cost of issuance of the Bonds to be paid with Bond proceeds. Section 11. Stephens Inc. and Crews
& Associates, Inc. are hereby engaged
as underwriters with respect
to the issuance of the Bonds, with Stephens Inc. to be designated

as managing underwriter. The fees and expenses of such underwriters shall be a cost of issuance of the Bonds
to be paid with Bond proceeds. Section 12. All ordinances and parts thereof in conflict herewith are hereby repealed
to the extent of such conflict. Section 13. The City Council hereby detennines that the City of Conway

is in dire need of accomplishing
and providing essential capital improvements;
that an appropriate way to provide such capital improvements

is by the levying of a .5% sales and use tax on the gross receipts from business within the City and by the issuance of bonds payable from such tax -5-

RSSOJA99 090397revenuesandalsobyapledgeofandlienuponalloraspecifiedportionoftheCity'sproceedsoftheCity'sexisting1%SalesandUseTaxleviedpursuanttoOrdinanceNo.0-81-42oftheCity;andthatthisordinanceshallbegivenimmediateeffectsothattheessentialcapitalimprovementsmaybeacquired,constructedand/orequippedassoonaspossible.Therefore,anemergencyisherebydeclaredtoexistandthisordinancebeingnecessaryfortheinunediatepreservationofthepublichealth,safety,andwelfareshallbeinfullforceandeffectfromandafteritspassageandapproval.PASSEDANDAPPROVEDthis2nddayofSeptember,1997.APPROVED:ATTEST:(SEAL)-6-RSS03A99090397

## CERTIFICATE The undersigned, City Clerk of the City of Conway, Arkansas, hereby certifies that the 

## foregoing

is a true and perfect copy of an Ordinance adopted
at a special meeting of the City Council of the 

## City of Conway, Arkansas, held at the City Hall in said 

## City at 6:30 o'clock 

## p.m., on September2, 1997. Dated: 

# September~ 1997. (SEA L)

-7- 

# ~ZM~ City Clerk RSS03A99 

### 090397ORDINANCE NO. 0 **-o~-.**t&/-1 AN ORDINANCE CALLING AND SETTING

A DATE FOR A SPECIAL ELECTION ON THE QUESTIONS
OF (1) THE LEVY OF A GENERAL LOCAL SALES AND USE TAX AT THE RATE OF ONE-QUARTER
OF ONE PERCENT (0.25%) WITHIN THE CITY, (2) THE ISSUANCE OF NOT TO EXCEED $11,565,000
OF REFUNDING BONOS BY THE CITY FOR THE PURPOSE OF REDEEMING THE CITY'S OUTSTANDING SALES AND USE TAX CAPITAL IMPROVEMENT BONOS, SERIES 1997A, AND (3) THE ISSUANCE OF NOT TO EXCEED $7,525,000 OF CAPITAL IMPROVEMENT BONOS BY THE CITY FOR THE PURPOSE OF FINANCING THE ACQUISITION, CONSTRUCTION AND EQUIPPING
OF POLICE STATION FACILITIES; LEVYING THE GENERAL LOCAL SALES AND USE TAX AT THE RATE OF ONE-QUARTER

OF ONE PERCENT (0.25%) WITHIN THE CITY; LEVYING

A SPECIAL LOCAL SALES AND USE TAX AT THE RATE OF ONE-QUARTER

OF ONE PERCENT (0.25%) WITHIN THE CITY, WHICH TAX SHALL CEASE UPON RETIREMENT

OF THE BONOS; DEFINING THE TERM "SINGLE TRANSACTION'; PRESCRIBING OTHER MATTERS PERTAINING THERETO; AND DECLARING AN EMERGENCY WHEREAS,
the City Council of the City of Conway, Arkansas (the "City") has determined that additional revenues can be obtained to fund City capital improvements

by restructuring existing City indebtedness secured by sales and use tax receipts through the refunding of the City's outstanding Sales and Use Tax Capital Improvement Bonds, Series 1997A (the "Prior Bonds"); and WHEREAS,
the City Council has also determined that there is a critical need for a source of revenue to finance police station facilities within the City, including the acquisition
of land and the construction and equipping of a building
or buildings and related facilities thereon; and WHEREAS, Title 26, Chapter 75, Subchapter

2 of the Arkansas Code of 1987 Annotated (the "Municipal General Sales and Use Tax Act") authorizes the levy of general citywide sales and use taxes; and WHEREAS, Title 14, Chapter 164, Subchapter

3 of the Arkansas Code of 1987 Annotated (the "Local Government Bond Act") authorizes the issuance of capital improvement bonds by municipalities, which bonds may be secured by the pledge of (i) all or a portion of the receipts of the general citywide sales and use tax prescribed
by the Municipal General Sales and Use Tax Act and (ii) all of the receipts of the special citywide sales and use tax prescribed
by the Local Government Bond Act; and WHEREAS, said general and special citywide sales and use taxes are to be levied and collected only on the first $2,500 of each single transaction; and 4843-9929-95&4.3WHEREAS,

if approved by the electors of the City, the City has determined

to issue (1) its refunding bonds in principal amount not to exceed $11,565,000 (the "Refunding Bonds") for the purpose of redeeming
all of the outstanding Prior Bonds, and (2) its capital improvement bonds in principal amount not to exceed $7,525,000 (the "Improvement Bonds") for the purpose of financing police station facilities within the City, including the acquisition
of land and the construction and equipping
of a building or buildings and related facilities thereon (the "Project"), which Refunding Bonds and Improvement Bonds are to be secured by a pledge of and lien upon (i) all of the receipts of a one-quarter
of one percent (0.25%) special citywide sales and use tax (the "Special Sales and Use Tax") and (ii) all of the receipts of a one-quarter
of one percent (0.25%) general citywide sales and use tax (the "General Sales and Use Tax"), all as authorized
by the Local Government Bond Act; and WB;EREAS, receipts of the General Sales and Use Tax will be utilized to the extent needed, after application
of the receipts of the Special Sales and Use Tax, for the payment of scheduled debt service on the Refunding Bonds and the Improvement Bonds, and thereafter may be utilized
at the direction of the City Council
to finance capital improvements within the City; and WHEREAS, the purpose of this Ordinance

is to call a special election on the levy by the City of the General Sales and Use Tax and the issuance by the City of the Refunding Bonds and the Improvement Bonds, and to define the term "single transaction"; NOW, THEREFORE,
BE IT ORDAINED

by the City Council of the City of Conway, Arkansas: Section
1. That under the authority of the Municipal General Sales and Use Tax Act and subject to approval by the electors of the City as provided
in Section

4 below, there is hereby levied

a sales tax at the rate of one-quarter
of one percent (0.25%) on the gross receipts from the sale at retail within the City of all items and services which are subject to taxation under the Arkansas Gross Receipts Act of 1941, as amended (Arkansas Code of 1987 Annotated §26-52- 101 et seq.), and an excise (or use) tax on the storage, use, distribution
or other consumption within the City of tangible personal property
or taxable services subject to taxation under the Arkansas Compensating Tax Act ofl949,
as amended (Arkansas Code of1987 Annotated §26- 53-101 et seq.), at the rate of **one~quarter**
of one percent (0.25%) on the sale price of the property or, in the case of leases or rentals, on the lease or rental price (collectively,
the "General Sales and Use Tax"). The General Sales and Use Tax shall be levied and collected only on the first $2,500 of each "single transaction"
(as defined
in Section 10 hereof). The levy and collection of the General Sales and Use Tax shall commence
on and as of such date as provided
in the Municipal General Sales and Use Tax Act. Revenues resulting from the collection
of the General Sales and Use Tax shall be utilized to the extent needed (after application
of receipts from the Special Sales and Use Tax described below) for the payment of scheduled debt service on the Refunding Bonds and the Improvement Bonds, and thereafter shall be applied as directed by the City Council to fmance capital improvements within the City. Section
2. That under the authority of the Local Government Bond Act and subject to approval of the issuance of either the Refunding Bonds or the Improvement Bonds by the electors of the City as provided
in Section

4 below, there is hereby levied

a sales tax at the rate of 4843-9929-9584.3

2one-quarter
of one percent (0.25%) on the gross receipts from the sale at retail within the City of all items and services which are subject to taxation under the Arkansas Gross Receipts Act of 1941, as amended (Arkansas Code of 1987 Annotated §26-52-101

et seq.), and an excise (or use) tax on the storage, use, distribution

or other consumption within the City of tangible personal property
or taxable services subject to taxation under the Arkansas Compensating Tax Act of 1949, as amended (Arkansas Code of 1987 Annotated §26-53-101

et seq.), at the rate of onequarter of one percent (0.25%) on the sale price of the property or, in the case of leases or rentals, on the lease or rental price (collectively,
the "Special Sales and Use Tax"). The Special Sales and Use Tax shall be levied and collected only on the first $2,500 of each "single transaction"
(as defined
in Section 10 hereof). The levy and collection of the Special Sales and Use Tax shall commence
on and as of April
1, 2006, and shall cease upon retirement
of the Refunding Bonds and the Improvement Bonds. Revenues resulting from the collection of the Special Sales and Use Tax shall be utilized solely for the payment of debt service on the Refunding Bonds and the Improvement Bonds. Section
3. That under the authority of the Local Government Bond Act and subject to approval by the electors of the City as provided
in Section

4 below, there is hereby authorized (1) the issuance of the City's refunding bonds in the aggregate principal amount of not to exceed $11,565,000 (the "Refunding Bonds") for the purpose of redeeming the City's outstanding Sales and Use Tax Capital Improvement Bonds, Series 1997A (the "Prior Bonds"), and (2) the issuance of the City's capital improvement bonds in the aggregate principal amount of not to exceed $7,525,000 (the "Improvement Bonds") for the purpose of acquiring, constructing and equipping
an integrated City police station facility (the "Project").

If the issuance of the Refunding Bonds and/or the Improvement Bonds
is approved by the electors of the City, such bonds may thereafter
be issued in one or more series from time to time in an aggregate principal amount not to exceed the respective principal amount(s) approved by the City's electors.
If approved by the electors of the City and issued, the Refunding Bonds and the Improvement Bonds shall be secured by a pledge of and a lien upon all of the receipts of the Special Sales and Use Tax and the General Sales and Use Tax, as authorized
by the Local Government Bond Act. Section
4. That there be, and there is hereby called,

a special election to be held on Tuesday, December
13, 2005, at which election there shall be submitted
to the electors of the City the question of the levy of the General Sales and Use Tax and the questions of the issuance of the Refunding Bonds and the Improvement Bonds. Section
5. That the questions shall be placed on the ballot for the special election
in substantially the following forms: Upon approval of both Questions

1 and 2 or all of Questions

1, 2 and 3 below, and the issuance of the Refunding Bonds (defined
in Question 2), the City's existing levy of a one-half of one percent (0.50%) sales and use tax securing the Prior Bonds (defined
in Question
2) shall cease and such tax will be replaced by the one-quarter
of one percent (0.25%) General Sales and Use Tax (defined
in Question

1) and the one-quarter
of one percent (0.25%) Special Sales and Use Tax (defined

in Question 2). 4843-9929-9584.3

3Question One: There
is submitted
to the qualified electors of the City of Conway, Arkansas, the question of the levy of a general citywide sales and use tax at the rate of onequarter of one percent (0.25%) (the "General Sales and Use Tax'') pursuant
to Title 26, Chapter 75, Subchapter

2 of the Arkansas Code of !987 Annotated (the "Municipal General Sales and Use Tax Act"). If approved by the electors of the City, receipts of the General Sales and Use Tax will be utilized to the extent needed, after application
of the receipts of the Special Sales and Use Tax (defined in Question

2 below), for the payment of scheduled debt service on the Refunding Bonds (defined
in Question

2 below) and the Improvement Bonds (defined
in Question

3 below), and thereafter may be utilized
at the direction of the City Council to finance capital improvements within the City. If approved, the levy and collection
of the General Sales and Use Tax shall commence
on and as of such date as provided
in the Municipal General Sales and Use Tax Act. If the issuance of the Refunding Bonds (defined
in Question

2 below)
is not approved, the General Sales and Use Tax will not be levied. Vote on the question by placing an "X" in one of the squares following the question, either for or against: FOR adoption of a one-quarter
of one percent (0.25%) local sales and use tax within the City of Conway, Arkansas ....................................................

D AGAINST adoption of a one-quarter
of one percent (0.25%) local sales and use tax within the City of Conway, Arkansas ..............................................

D Question Two: There is also submitted
to the qualified electors of the City of Conway, Arkansas, the question of the issuance of refunding bonds in principal amount not to exceed $11,565,000 (the "Refunding BonM') pursuant
to Title 14, Chapter 164, Subchapter

3 of the Arkansas Code of I 987 Annotated (the "Local Government Bond Act") for the purpose of refunding the City's outstanding Sales and Use Tax Capital Improvement Bonds, Series 1997A (the "Prior Bonds").

If the issuance of the Refunding Bonds
is approved, the Refunding Bonds shall be secured by a pledge of and lien upon (i) all of the receipts of a special citywide sales and use tax at the rate of one-quarter
of one percent (0.25%) levied pursuant
to the Local Government Bond Act (the "Special Sales and Use Tax") and (ii) all of the receipts of the General Sales and Use Tax (defined
in Question

1 above). If the issuance of the Refunding Bonds
is approved, the levy and collection of the Special Sales and Use Tax shall commence
on and as of April
1, 2006, and shall cease upon retirement
of the Refunding Bonds and the Improvement Bonds (defined
in Question

3 below). Upon the issuance of the Refunding Bonds, the City's existing levy of the half percent (0.50%) sales and use tax securing the Prior Bonds shall cease as provided

in the Local Government Bond Act. If the 4843-9929-9584.3

4levy of the General Sales and Use Tax is not approved, the Refunding Bonds will not be issued and the Special Sales and Use Tax will not be levied. Vote on the question by placing an "X" in one of the squares following the question, either for or against: FOR the issuance of Refunding Bonds
in principal amount not to exceed $11,565,000 ................................................................................

.0 AGAINST the issuance of Refunding Bonds in principal amount not to exceed $11,565,000 ······· .................................

····· ...................................

0 Question Three: There is also submitted
to the qualified electors of the City of Conway, Arkansas, the question of the issuance of capital improvement bonds in principal amount not to exceed $7,525,000 (the "Improvement Bonds") pursuant
to Title 14, Chapter 164, Subchapter

3 of the Arkansas Code of 1987 Annotated (the "Local Government Bond Act") for the purpose of financing
an integrated City police station facility to be comprised
of the acquisition
of land and the construction and equipping of a building or buildings and related facilities thereon (the "Project"). If the issuance of the Improvement Bonds
is approved, the Improvement Bonds shall be secured by a pledge of and lien upon (i) all of the receipts of a special citywide sales and use tax at the rate of one-quarter
of one percent (0.25%) levied pursuant
to the Local Government Bond Act (the "Special Sales and Use Tax") and (ii) all of the receipts ofthe General Sales and Use Tax (defined
in Question

1 above). If the issuance of the Improvement Bonds
is approved, the levy and collection of the Special Sales and Use Tax shall commence
on and as of April
1, 2006, and shall cease upon retirement
of the Improvement Bonds and the Refunding Bonds (defined
in Question

2 above).
If both the levy of General Sales and Use Tax and the issuance of the Refunding Bonds are not approved, the Improvement Bonds will not be issued. Vote on the question by placing an "X" in one of the squares following the question, either for or against: FOR the issuance of Improvement Bonds in principal amount not to exceed $7,525,000 for the purpose of acquiring, constructing and equipping
an integrated City police station facility to be comprised of land,

a building or buildings and related facilities, which may include landscaping improvements, furniture, furnishings, fixtures, computers and related equipment and software, construction of parking facilities and sidewalks, any necessary road, drainage and utility improvements,
and other related improvements .......................................

0 AGAINST the issuance of Improvement Bonds in principal amount not to exceed $7,525,000 for the purpose of acquiring, constructing and equipping
an integrated City police station facility

to be comprised
of land,

a building
or buildings and related facilities, which may include landscaping improvements, furniture, 4843·9929·9584.3

5furnishings, fixtures, computers and related equipment and software, construction of parking facilities and sidewalks, any necessary road, drainage and utility improvements,
and other related improvements ......................................

0 Section
6. That the election shall be held and conducted and the vote canvassed and the results declared under the law and in the manner now provided for Arkansas municipal elections unless othen¥ise provided
in the Local Government Bond Act, and only qualified voters of the City shall have the right to vote at the election. The City Clerk
is hereby directed to give notice of the special election by one advertisement

in The Log Cabin Democrat, the publication

to be not less than ten ( 1 0) days prior to the date of the election. Section
7. That
a copy of this Ordinance shall be given to the Faulkner County Board of Election Commissioners

so that the necessary election officials and supplies may be provided.

A certified copy of this Ordinance shall also be provided
to the Director of the Department

of Finance and Administration

of the State of Arkansas
as soon as **practica~**and at least forty-five (45) days prior to the date of the special election. Section
8. That the results of the special election shall be proclaimed
by the Mayor, and his proclamation shall be published one time in The Log Cabin Democrat. The proclamation shall advise that the results as proclaimed shall be conclusive unless attacked
in the Circuit Court of Faulkner County within thirty (30) days after the date of publication
of the proclamation. Section
9. That the Mayor and the City Clerk, for and on behalf of the City, be, and they hereby are authorized and directed to do any and all things necessary
to call and hold the special election
as herein provided and, if the levy of the General Sales and Use Tax and the issuance of the Refunding Bonds and/or the Improvement Bonds are approved by the electors,
to cause the General Sales and Use Tax and the Special Sales and Use Tax to be collected

in accordance with the Municipal General Sales and Use Tax Act and the Local Government Bond Act, respectively, and to perform all acts of whatever nature necessary
to cany out the authority conferred
by this Ordinance. Section 10. That, for purposes of the General Sales and Use Tax and the Special Sales and Use Tax, the term "single transaction"

is defined according
to the nature of the goods purchased

as follows: A. When two (2) or more devices
in which, upon which or by which any person or property
is, or may be, transported

or drawn, including, but not limited to, on-road vehicles, off-road vehicles or farm vehicles, whether required to be licensed or not, airplanes, water vessels, motor vehicles, non-motorized vehicles or mobile homes, are sold to a person by a seller, each individual unit, whether part of a "fleet" sale or not, shall be treated as a single transaction for the purposes of the General Sales and Use Tax and the Special Sales and Use Tax; B. Charges for utility services which are subject to the General Sales and Use Tax and the Special Sales and Use Tax, and which are furnished on a continuous service basis, whether such services are paid for daily, weekly, monthly or annually, shall be computed

in daily increments, and each such daily 4843-9929-9584.3

6charge increment shall be considered

to be a single transaction for the purposes of the General Sales and Use Tax and the Special Sales and Use Tax. C. For sales of building materials and supplies to contractors, builders or other persons,

a single transaction, for the purposes of the General Sales and Use Tax and the Special Sales and Use Tax, shall be deemed to be any single sale which
is reflected on a single invoice, receipt or statement,
on which an aggregate sales or use tax figure has been reported and remitted to the State of Arkansas; D. When two (2) or more items of major household appliances, major equipment
or machinery are sold, each individual unit shall be treated as a single transaction for the purposes of the General Sales and Use Tax and the Special Sales and Use Tax. E. For groceries, drug items, dry goods and other tangible personal property and/or services not expressly covered
in this Section 10, a single transaction,
for the purposes of the General Sales and Use Tax and the Special Sales and Use Tax, shall be deemed
to be any single sale which is reflected on a single invoice, receipt or statement,
on which an aggregate sales tax figure has been reported and remitted to the State of Arkansas. Section

2 of Ordinance No. 0-81-42 and Section

7 of Ordinance No .. 0-01-76 are hereby amended
to confonn to the language
in this Section 10. Section 11. That all ordinances and parts thereof in conflict herewith are hereby repealed to the extent of such conflict. 4&43-9929-9584.3

7Section 12. That
it is hereby ascertained and declared that there is a critical need to restructure the City's outstanding indebtedness through the refunding of the Prior Bonds and to obtain an additional source of revenue to finance needed capital improvements, including the Project, all in order to promote and protect the health, safety and welfare of the inhabitants
of the City. It is, therefore, declared that an emergency exists and this Ordinance being necessary for the immediate preservation

of public peace, health and safety shall be in force and effect immediately from and after its passage. y,!. /7 PASSED AND APPROVED this,'2$' day of **Y~Ge£.**2005. APPROVED: By: **.:kJ~** Mayor

v ATTEST: **By/~oc::.~** City Clerk (SEAL) 4843-9929-9584.3

8CERTIFICATE The undersigned, City Clerk of the City of Conway, Arkansas, hereby certifies that the foregoing

is a true and perfect copy of an Ordinance adopted
at a regular meeting of the City Council of the City of Conway, Arkansas, held at 6:30p.m. on aM- .l. L

, 2005. DATED: /o -o25 ,2005

City Clerk 4843-9929-9584.3

9